The Bureau of Internal Revenue (BIR) made it clear on Monday that two-time Olympic Gold medalist Carlos Yulo is not subject to taxes for his winnings and gifts.
“It is stated in Section 32(B)(7)(d) of the NIRC that all prizes and awards of athletes in local and international sports tournaments in competitions held in the Philippines or abroad, as long as it is allowed by the respective national sports associations[,] are exempt from income tax,” BIR Commissioner Romeo “Jun” Lumagui Jr. said.
“Therefore, all prizes, awards, and gifts received by [Yulo] from the 2024 Paris Olympics Committee as well as those from our National Government shall not be taxed in force of Republic Act (RA) No. 10699, or the ‘National Athletes and Coaches Benefits and Incentives Act’ and of other laws that apply to this,” he added.
Prizes, gifts, inheritance, and things of the like from private entities or individuals do not count in the gross income of their recipient, so it need not be taxed, according to Section 32 (B)(3) of the National Internal Revenue Code (NIRC) or the country’s tax code.
The recipient will not answer for the giver’s tax either, as said in Section 98 of the NIRC.
“BIR salutes our athletes and their skills that will serve as an inspiration to every Filipino and the next generation,” Lumagui concluded.
